A long-term underlying cause of the financial crisis was

Question

Quizplus · Accepted Answer

The 'Light touch' regulation encouraged financial innovation which resulted in the creation of complex financial products like mortgage-backed securities and collateralized debt obligations (CDOs). These products were sold by banks to investors and were a key factor in the financial crisis. The lack of regulation allowed for the excessive use of these products, which eventually led to their collapse and the eventual financial crisis.

A Long-Term Underlying Cause of the Financial Crisis Was